ASF Asks CFTC for Relief on Regulation of Securitization Vehicles as Pools (with Lofchie Comment)

The Asset Securitization Forum ("ASF") has published a request it has made to the CFTC as to the proposed extent of CFTC regulation of securitization vehicles as "pools" by reason of their entering into swaps. The relief requested by the letter varies depending on the status of the vehicle; e.g., whether it is a "legacy" vehicle, the structure of the vehicle, and the purpose of the vehicle.

Lofchie Comment:I would largely reiterate the comments that I made inyesterday's news as to ICI's challenge to the CFTC's rule amendment that would provide for the regulation of SEC-registered investment companies as pools. From a policy standpoint, it would seem an extremely low priority for the CFTC to regulate many of the vehicles discussed in the ASF letter, which are using swaps for hedging purposes. It is likewise difficult to understand why the CFTC is seeking to expand its jurisdiction so broadly, given how much unfinished work that would seem to be of a far higher priority is on its plate. I also note that certain major swap regulations are scheduled to go into effect on October 12, yet, as of October 8th, the CFTC has not issued widely expected timing relief, without which securitization vehicles will have a hard time operating. This is to say nothing of the Treasury's not yet defining the set of FX transactions that are "swaps" for purposes of Dodd-Frank (a topic that was also covered in yesterday's news). I find "just in time" an odd manner of doing financial regulation (is it just me?).